Structured Settlement Purchase Company Bond Guide
Structured settlement purchase companies in some states need to file a surety bond to be licensed. Learn how to navigate the bonding process with this guide.
Bond Overview
- Purpose: To ensure a company fulfills obligations to the customer and operates legally
- Who Needs It: Structured settlement purchase companies in certain states
- Required Amount: Typically $50,000
- Premium Rates: $500–$5,000, credit based
What is a Structured Settlement?
A structured settlement is a court negotiation between a defendant and an injured party. It is a settlement paid out over a specified period of time rather than a one-time lump sum. Since they are not paid out all at once they are often for larger sums of money.
What Are Structured Settlement Purchase Company Bonds?
A structured settlement purchase company bond is a type of surety bond that protects customers and ensures owners and employees follow state regulations.
These bonds are not a requirement for all structured settlement purchase companies. However, some states will require them to protect clients who sell structured settlement plans to companies for a discounted lump sum.
How Much Do Structured Settlement Purchase Company Bonds Cost?
Structured settlement purchase company bonds cost a small percentage of the total coverage amount, typically 1–10%. Your personalized premium rate will depend on your credit score and financial history.
Most structured settlement bonds require $50,000 coverage. However, in Maryland the coverage amount is $100,000 for structured settlement transferees.
Select your state below to learn more and apply for a free quote.
How Do Structured Settlement Purchase Company Bonds Work?
A structured settlement purchase company bond creates a legal contract between three parties:
- Principal: You, the structured settlement purchase company filing the bond
- Obligee: The government entity requiring the bond
- Surety: The provider issuing and backing the bond
As the principal, you must uphold the bond terms as promised. Otherwise, harmed parties can file claims on the bond.
Who Needs a Structured Settlement Purchase Company Bond?
A few states require this bond as part of the licensing process for structured settlement purchase companies, including Nevada, Maryland, Louisiana, Georgia, Alabama and South Carolina.
As an alternative, you can often submit a letter of credit or a cash bond. However, a surety bond is often the most affordable option, requiring only an upfront premium and no collateral.
How to Get a Structured Settlement Purchase Company Bond
SuretyBonds.com provides the fastest and easiest way to get a structured settlement purchase company bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
After signing and receiving your official bond documentation, file it with the obligee to become officially bonded.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Do I Renew My Structured Settlement Purchase Company Bond?
These bonds expire annually. To renew your structured settlement purchase company bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
How Do I Update My Structured Settlement Purchase Company Bond Form?
If you need to make any small adjustments to your official bond form, such as name or address, contact us at [email protected] outlining the requested update.
If possible, we’ll issue a bond rider document to amend your active structured settlement purchase company bond free of charge.
Can I Get Bonded With Bad Credit?
Yes, while we can’t guarantee every applicant will be accepted, we’ll use our bad credit bonding program options to match you with a provider at the best rate on the market.
